Describe the pace at which your product will move through the product life cycle and the factors that will impact its movement. Describe specific marketing strategies and tactics for each phase.
The product life cycle is perceived to have four specific phases; introduction, growth, maturity, and decline. Each are generally plotted with volumes a function of time. Apple, who does business differently, releases a new version of their device every year. They introduce the device to the world, shows off what it can do, and why the customer should have it. Every year like clockwork, they release a new updated version of the device. With the iTV, it will have to adopt a different model similar to the iMac product. Instead of a new iMac every year like to iPhone, the iMac updates every 3 years. The iTV will need to follow this plan for a successful and long product life cycle.
The introduction stage consists of high costs, low sale volumes, no or light competition, and to take action, customers need to be stimulated. The iPad, when introduced, had little to no competition due the device bringing tablets to the mainstream. Apple knew that people wanted something to replace their laptops for mobility, simplicity, and price. The iPad was priced at $499, a little more than an iPhone but cheaper than high-end laptops. The iTV would be entering a market that already has many choices of quality, size, and features. Apple, even though it’s creating a unique experience, would have to competitively the iTV based on these features, even if it must take a hit in profit. Its introduction must be extensive to display its unique features and why it is a superior product compared to its competitors. Apple has a following, where people buy every Apple device when introduced; these early adopters will be key customers to the iTV’s success and life cycle.
The growth stage, profit increases as volume increases due to reduced unit costs, through the increase in volume advertising is repaid, the market awareness of the product moves beyond the early adopters, and more competition enters the market. The iTV will pick up speed in this stage. Based on market reception, an update or another option to size could be introduced. If customers want to purchase the iTV, but cannot afford its steep price, perhaps a smaller screen with a lower price could entice them. The early adopters will be joined by the “early majority” customers.
Over time, the iTV will enter the maturity stage. Costs will continue to lower as more volume is increased, more competition enters the market, and new products will begin to have an effect on the iTV’s market decision. In this phase, Apple will decide if this product will stay or if it will need an overhaul. The early adopters and early majority will be joined by the “late majority” customers. The sales and growth of the product will make this product a staple in its competition. Retails such as Best Buy, do not sort all tablets together, but as the iPad and Tablets. (Best Buy, 2013) This is what Apple will want for the iTV.
Typically, the decline stage consists of a decline in sales volumes, the product becomes remains cash generative and profit margins are maintained. The iTV in this stage should be recognizable and be on everyone’s wish list. Apple, who creates products for the long term, should create plan to update and keep this product in the growth stage. If it does cease to make a profit, Apple would evaluate how to change that or cease manufacturing. The early adopters, early majority, and late majority are still not joined by the people who are resistant to purchase.
Describe the attributes of your product or service in detail
The iTv will be the first television in production to give the ability to use the other related Apple products such as the iPad, iPhone and iMac through the television. The ability to use apps the consumer has on other products, link with iTunes and use Facetime are just a few of the features the television will offer. With an additional wireless transceiver device, the iMac will be able to transfer documents, photos, and watch videos wirelessly through the television. This product will be the first to have a full interactive experience with the Apple customer and provide the quality and expectations that those customers have come to expect.
Product description and specifications
The television will range from 20" to 60" with the sizes every few inches to decrease the amount of waste in uncommon sizing. The color of the television and remotes will be black, with both having a white Apple in the corner of the product. iTv will have the sleek flat design that other televisions have and ability to wall mount the televisions or house it on an entertainment station. The resolution of the televisions will be the standard 1080p, which offers a crisp and clear image rather than that of the 1080i projections (Silva,n.d.). Since customers of Apple have come to have high expectations with the product line, the television will require minimal setup, and if the customer already has an Apple ID, the set up time will simpler. The customer will only have to log into their account from the television and the transfer and synchronize their apps, contacts, music, and photos will transfer instantly. Those customers, who do not have other Apple products will have to create a customer user name, specify information such as birth date, name, and location to gain access to the Apple apps and synchronization options. A manual will be provided in each box, to help customers set up the television, and find what cables will be needed to be to have surround sound, and external DVD players and gaming systems.
Customer expectations
When a customer wants to purchase an Apple product, they go either to an Apple store or to a retailer to buy the product. The products are displayed in the Apple store along with extra additions such as cables, cases, batteries, covers, and stickers. There are also experienced customer service, and sales representatives available to answer any questions the customer might have. The products are also available to interact with to have the customers try out the new product before they make a purchase. Apple products have a long standing with customers and their expectations and with the introduction of the iTv, customers will want the opportunity to try out the television with the addition of the other products in store.